Retirement is supposed to be the reward for decades of hard work-the chapter where you finally have the time, the freedom, and the resources to explore all the places you always meant to see. Many Americans in their sixties and seventies are doing exactly that, settling in sunnier, more affordable countries or spending extended months traveling through destinations they have dreamed about for years.
What comes as a surprise to many is that leaving the US behind does not mean leaving US tax obligations behind. No matter how long you have been living in Portugal, Mexico, Costa Rica, or anywhere else, your citizenship means you still file US taxes every year. For retirees drawing Social Security, pension income, IRA distributions, and investment returns-often from multiple sources-that filing can be more complex than anything you dealt with during your working years.
Taxes for Expats (TFX) is a specialist firm with over 25 years of experience working exclusively with Americans living abroad. This review looks honestly at what they offer, what they charge in 2026, and whether they are a good fit for older Americans who have made the world their home.
Why retirement abroad creates tax complexity
Staying tax-compliant as an American retiree living overseas involves juggling several systems at once. The US taxes its citizens on worldwide income regardless of where they live-a policy known as citizenship-based taxation that affects every American abroad, not just those who are still working.
For retirees specifically, several issues tend to come up together:
- Social Security income is taxable at the federal level above certain thresholds and may also interact with tax treaties between the US and your country of residence
- IRA and 401(k) distributions are counted as ordinary income and must be reported in full, which can affect which tax bracket you fall into and how much you owe
- Investment income-dividends, interest, capital gains-continues to accumulate US reporting obligations even if the underlying accounts are held abroad
- Foreign bank accounts trigger FBAR filing requirements if the combined balance exceeds $10,000 at any point during the year, with penalties for non-compliance starting at $10,000
- Foreign pension income from a host country, if you have worked abroad or receive a foreign government pension, adds yet another layer of complexity
On top of all this, tax treaties between the US and many popular retirement destinations-Portugal, Mexico, Spain, France, Italy, and others-can reduce double taxation but only when applied correctly. Knowing which treaty provisions apply to your specific income types and how to claim them on a US return, requires genuine expertise.
Most domestic accountants encounter these situations rarely and are not well-positioned to navigate them.
What Taxes for Expats does
TFX operates as a fully remote, online-only tax preparation service for US expats. They do not prepare domestic-only returns, which means every member of their team is oriented exclusively around cross-border situations. Their staff of 80+ CPAs, Enrolled Agents, and JDs each brings at least ten years of expat tax experience, and every completed return goes through a dual review process before the client sees it.
Who they work with
Their client base is broad, but it maps well onto the retiree traveler audience:
- Retirees receiving US Social Security, pensions, or IRA distributions while living abroad
- Americans receiving income from both US and foreign sources
- Long-term expats settled in one country with mixed investment and retirement income
- Couples where one or both partners have complex income situations
- Anyone who owns US rental property while living overseas
- People who have fallen behind on filing and need a structured catch-up path
How the process works
Everything is handled through a secure online portal, which is straightforward to use and accessible from anywhere in the world. The process begins with a detailed questionnaire tailored to expat situations, covering your income sources, countries of residence, foreign accounts, and prior filing history. From there, you upload the relevant documents-prior returns, income statements, bank records, and any foreign tax documents-into the portal, which is protected by strong encryption and two-factor authentication.
You are then assigned to a CPA or Enrolled Agent who reviews your specific situation, determines the right approach to your income and any applicable tax treaties, prepares your return with all required forms, and passes the completed work to a senior reviewer. The dual review process is a meaningful quality control step rather than just a formality, particularly valuable when your situation involves multiple income sources and treaty positions that need to be applied correctly.
You see the finished return in your portal, review it at your own pace, ask any questions you have, and approve it before filing. Standard turnaround is about fifteen business days per tax year once all your documents are submitted.
What it costs in 2026
TFX uses flat-fee pricing with a published rate structure, which means you can estimate your cost in advance without any surprises once work begins. The base federal return is $450 and includes over 35 tax forms, covering US wages, retirement income, Social Security, interest and dividends, foreign tax credits, and foreign earned income exclusion, among others.
Typical pricing scenarios for retirees abroad
| Situation | Additional services | Approximate total |
|---|---|---|
| Retiree with Social Security + IRA income, living abroad | Base federal return | $450 |
| Retiree with foreign bank accounts over $10,000 | Base + FBAR filing ($85) | $535 |
| Retiree with FATCA reporting (up to 5 foreign accounts) | Base + FATCA form ($100) | $550 |
| Retiree with US rental property income | Base + rental schedule | Additional fee applies |
| Couple with separate returns and foreign accounts | Two base returns + FBAR each | From $1,070 |
| Non-US pension income from host country | Base + non-US pension form | Additional fee applies |
| Behind on several years, needs amnesty path | Streamlined procedure package | $1,450 (includes 3-year returns + 6-year FBAR, 28% discount) |
| Maintaining a state tax filing obligation | Base + state return ($160) | $610+ |
TFX notes that competitor quotes should be converted to US dollars and checked for VAT before making comparisons, as some services quote in other currencies or add VAT on top-making TFX potentially up to 75% cheaper on a true apples-to-apples basis.
A 20% multi-year discount is also available when filing three or more years simultaneously, which can be helpful for retirees who did not realize they had an ongoing US filing requirement.
What experienced travelers and expats say about TFX
Across reviews from expat communities, travel blogs, and independent publications, several consistent themes emerge about the experience of working with TFX.
Consistently praised:
- The expat-only focus means preparers are genuinely familiar with retirement income in an international context-Social Security taxation, treaty provisions for pension income, and the interaction between foreign and US tax systems
- The experience level of the staff is regularly highlighted; clients frequently comment on working with knowledgeable professionals who understand their situation without needing it extensively explained
- The portal and communication process work well for people who are abroad and not available during US business hours, and the asynchronous approach suits retirees who prefer to review documents at their own pace
- Many clients mention staying with TFX for many years as their situation evolves, because the firm knows their history and continuity reduces the effort required each year
Commonly noted limitations:
- The base fee of $450 may feel unnecessary if your situation is very simple and you are comfortable with tax software
- The service is entirely virtual, which is not ideal for clients who strongly prefer to sit down with someone in person
- For very complex situations involving multiple foreign entities, large investment portfolios, or sophisticated planning needs, fees can accumulate and some clients would prefer higher-touch advisory relationships
The general picture from long-term clients is that TFX delivers consistent, reliable work without the stress of trying to find a domestic accountant who understands expat taxation.
How TFX compares to other options
Most American retirees living abroad face the same set of choices for handling US taxes.
DIY tax software keeps costs low but places the full burden of knowing which forms apply and which treaty provisions to invoke squarely on you. For retirees with straightforward situations and a high comfort level with tax forms, this can work. For anyone with foreign accounts, foreign pension income, or multiple income sources, the risk of errors and missed filings is significant.
A domestic US accountant is a natural first thought, especially for those who have used the same person for decades. The challenge is that most domestic CPAs rarely handle expat cases, and the specific knowledge needed to apply tax treaties correctly, handle FBAR obligations, and optimize retirement income across borders is genuinely uncommon outside of specialist firms.
A local accountant in your host country is worth considering for understanding local tax and social security obligations, but they do not replace your US filing requirements. You would need separate help for the US side, regardless.
A specialist expat firm like TFX fills the gap. For retirees with mixed US and foreign income, foreign accounts, and ongoing compliance needs, the combination of expertise, transparent pricing, and a remote-first process that works from anywhere in the world is difficult to replicate through other options.
Is Taxes for Expats right for your situation?
The answer depends on the specifics of your retirement income and lifestyle.
TFX is likely a strong fit if:
- You receive US retirement income (Social Security, IRA, pension) while living abroad
- You have foreign bank accounts or investments that may require additional reporting
- You want to ensure treaty benefits are correctly applied to your income
- You are behind on filing and want to catch up through an IRS amnesty program
- You value a reliable, established process over searching for the cheapest option
You might look elsewhere if:
- Your income is entirely from a single, simple US source with no foreign accounts and no complexity
- You prefer in-person meetings and want to work with someone locally
- Your situation is exceptionally complex and involves large foreign business structures or multi-jurisdictional estate planning
A few practical steps before tax season
Regardless of which service you choose, these habits will make US tax compliance considerably easier:
- Organize income documentation as it arrives throughout the year, rather than searching for everything in spring-this includes US 1099s, Social Security benefit statements, foreign bank statements, and any local tax assessments
- Know which accounts cross the $10,000 FBAR threshold at any point during the year and ensure you have complete records for those accounts
- Research whether your host country has a US tax treaty and which specific provisions might apply to your income. Your TFX preparer can handle this, but understanding it at a basic level helps you ask better questions
- Plan ahead before major financial moves, such as drawing down a large IRA distribution, selling property, or moving significant funds between countries, because the US tax consequences can be substantial
Keeping taxes from getting in the way of the adventure
The places you see in retirement should be the main story, not a backdrop to tax anxiety. The reality for American travelers and retirees living abroad is that US tax obligations do not disappear with a change of address, but they can be managed efficiently and reliably with the right help.
Taxes for Expats has spent 25 years building systems and developing expertise specifically for Americans in exactly this situation. For retirees with the kind of mixed income, foreign accounts, and multi-country life that comes with traveling and living abroad seriously, professional expat tax help is not an indulgence-it is simply the practical choice that protects the life you have worked hard to build.
